Ukrainian hardware producers compete with each other in export markets

The Ukrainian hardware industry is showing steady growth in exports despite difficult conditions. A distinctive feature of exports is that Ukrainian exporters compete not only with products from China and Turkey, but also with each other. Maksym Feofanov, production manager at the Metiz plant, talks about the specifics of export activities, the requirements of foreign partners, competitive advantages, and development plans.

Development dynamics

The company’s export direction took shape in the 1990s. While initially the main markets were in the neighboring countries, over the last decade there has been an active reorientation towards European markets. Currently, the plant’s products are exported to Poland, Lithuania, Latvia, Moldova, the Czech Republic, Slovakia, Romania, Germany, and other EU countries.

In 2024, the company recorded an increase in exports. In ten months, supplies increased by 20.3%. Shipments to Romania were resumed after a long break, and in December last year, the company returned to the Georgian market with a test batch of 22 tons. The plant’s products are also sold in Western European countries — Spain, Italy, Austria, and France.

Product range and production scale

The plant has over 4,000 square meters of production space, its own railroad tracks, and motor vehicles for delivery. Currently, the company produces:

• general-purpose steel wire;
• heat-treated wire;
• wire for reinforcing reinforced concrete structures BP-1;
• various types of nails.

Monthly production volume is about 1,500 tons. This allows the company to meet domestic demand and form batches for export. On average, product sales are distributed in a 50/50 ratio between domestic and foreign markets, and in certain periods, the share of exports increases to 55%.

The main export consumer segments are distributed almost equally: about 50% goes to the construction industry (reinforcing wire and nails), and another 50% to industry, where general-purpose wire is used to manufacture various products. According to the company’s estimates, its share in the Ukrainian export hardware market is about 6–7%.

The company has a multi-level control system in place: from raw material inspection to finished product testing. To ensure the highest quality of export products, no additional equipment is used; instead, more careful control is applied—products are checked several times. This approach ensures compliance with national and European standards.

Quality requirements

The export market has higher product quality requirements that must be met. The company manufactures and exports two types of products: wire and nails.

With regard to wire, a wide variety of packaging types must be taken into account – not only traditional types used in Ukraine, but also intermediate types of packaging. There are also increased requirements for the quality of the wire surface: it must be smoother, without traces of grease. In addition, additional strapping, stretch film packaging, and palletizing are required.

As for nails, there are specific standards for their production. While the domestic market is oriented towards GOST standards and technical conditions of Ukraine, there are foreign standards (DIN, etc.) for export, which provide for slightly different sizes than Ukrainian ones. In addition, there are higher quality requirements: smaller tolerances, no displacement of the axis line relative to the nail head is allowed. Packaging of 1 kg is widely used, while packaging of 10 and 25 kg is more common in the domestic market.

External competition

Since the days of the USSR, Ukraine has been home to a large number of hardware manufacturers. While there are no large factories in Russia west of the Urals (everything was supplied from Ukraine), Ukraine has always had and continues to have a large number of hardware manufacturers.

Internal competition between Ukrainian manufacturers is quite fierce. In the markets where the company is currently represented, competition is primarily with Ukrainian manufacturers.

When it comes to other countries, the main competitors are, of course, China and Turkey. China can conquer any market if it wants to, but China is not about business, it is about politics. Turkish hardware manufacturers are more focused on Western Europe and are not as well represented in Eastern European markets, which makes our work a little easier.

Unfortunately, the company cannot provide large commodity loans like some of its competitors, which is their strong advantage. Therefore, competition is based on quality, level of service, price, and providing better conditions: shorter delivery times and better logistics.

In turn, buyers in export markets are guided by a set of criteria: price, quality, and service. Delivery times are also important. Everything matters in combination.

Export plans

For a company, exporting is not only an opportunity to sell volumes that are not consumed by the domestic market. It is also a way to enter new markets with higher quality requirements. Working with foreign partners involves stricter standards for product quality, packaging, regularity, and timeliness of deliveries. This disciplines and at the same time increases the level of production.

Export plans are primarily related to the overall modernization of equipment. In particular, drawing equipment (straight-through drawing mills) and heat treatment equipment (more productive and higher quality annealing furnaces). This will allow us to produce products of a much higher quality or significantly increase our capacity and export volumes.

In the near future, the company also plans to strengthen its position in Eastern Europe, expand its supply geography, and increase its share in already developed markets.